Kuala Lumpur, 27 August 2025 – Uzma Bhd (KL: UZMA) shares surged more than 8%—reaching a three-month high of 45 sen—after the oil-and-gas services company delivered record earnings for the financial year ended 30 June 2025 (FY2025). Net profits reached an all-time high of RM53.54 million, led by its strongest quarterly performance to date (RM19.88 million in 4QFY2025), exceeding consensus forecasts by nearly 16%.
Following these impressive results, Public Investment Bank upgraded Uzma’s stock to ‘Outperform’. All three brokerage houses tracking Uzma now rate it a unanimous ‘Buy’, citing successful diversification efforts away from traditional oil-and-gas services.
Diversification Starts to Pay Off
Uzma’s move into solar—specifically solar EPCC (Engineering, Procurement, Construction, and Commissioning) services—and recurring revenue from its solar plant in Kuala Muda, Kedah, is beginning to generate tangible returns. According to Public Investment Bank, the timely delivery of solar EPCC projects enhances Uzma’s credibility and positions it favorably for future contract wins.
Additional tailwinds are expected from new ventures: a seismic vessel contract, large-scale solar farms, a water injection facility lease, and a satellite-based initiative. Collectively, these ventures are projected to fuel 30% year-on-year growth in earnings per share (EPS) for FY2026, with the seismic vessel charter alone expected to add RM10 million to profit.
Investor Sentiment Shifts
The recent price rally has trimmed Uzma’s year-to-date losses to approximately 23%. With an average target price now at 69 sen per share, investors anticipate a potential upside of roughly 57% over the next 12 months from current levels. Analysts from Phillip Capital noted, “We view the sharp correction in share price as unwarranted, given the strong earnings momentum with new multiple growth drivers.”
Strategic Outlook: From Cyclical Cycles to Multiple Growth Drivers
Uzma’s transformation underscores a broader strategic pivot: moving away from cyclical oil and gas dependence toward diversified growth industries such as renewable energy and maritime services. The company’s diversification strategy not only enhances resilience against market cycles but also aligns with emerging opportunities in energy transition and resource infrastructure.
As Uzma charts fresh paths into sustainability and asset-based services, it flags a compelling narrative for investors: a company adapting to global energy shifts, delivering consistent execution, and unlocking value across multiple revenue streams.
